Regional Expansion in Manchester
SME lender LHV Bank is set to expand its lending activities in the north of the UK through its new office in Manchester. This move is part of LHV’s strategy to build a £100m loan book by the end of 2023, which is double the initial target of £50m set at the beginning of the year.
Meeting Market Demand
Erki Kilu, the CEO of LHV Bank, expressed his optimism about the growth potential in the region. He highlighted the successful development of a solid loan book by the SME lending team, indicating a strong market demand for competitive loans.
Loan Offerings
LHV Bank offers commercial property and trading loans to UK SMEs, ranging in value from £500,000 to £5m. The recent acquisition of failed lender Bank North in October 2022 has accelerated LHV’s lending activities.
Positioning in the Market
Kilu mentioned that LHV Bank aims to establish itself as a strong competitor in the mid-market SME lending space. The bank faces competition from players like OakNorth, Allica, and Shawbrook Bank.
Expansion into Consumer Savings
Last month, LHV Bank announced a partnership with Raisin UK to launch its savings offerings for consumers. The bank will introduce 12 Month Fixed Term, 95 Day Notice, and Easy Access savings accounts.
About LHV Bank
Formerly the UK arm of Estonian financial services giant AS LHV Pank, LHV Bank now operates as a separate bank in its own right after obtaining its banking licence.
